Coca-Cola proposes energy drinks

Thursday, November 08, 2018

Coca Cola
Coca-Cola Co (KO.N) is planning to launch a range of energy drinks for the first time on its own brand name as it intensifies efforts to break away from its traditional fizzy sodas and shift to health-focused trends.
The company on Thursday told Reuters it was working on plans to launch new drinks which would be branded "Coca-Cola Energy" and "Coca-Cola Energy No Sugar" and made with naturally-derived caffeine and guarana extract.

Coke has previously taken a cautious approach to energy drinks as they are wrought with controversy in both the United States and international markets after some drinks were linked to deaths in young people. The company initially took a nearly 17 percent stake in energy drinks maker Monster Beverage Corp (MNST.O) in 2015, making Coke the largest shareholder, to sample at a distance the market in which it had a small presence with its NOS and Full throttle brands.
However, the partnership has turned rocky with Coke currently in arbitration with Monster Beverage over the launch of the Coke energy drinks, as it would put it in direct competition with Monster and violate their initial 2015 agreement. "We have submitted the difference in interpretation to an arbitration panel for resolution, which is the mechanism agreed by the Coca-Cola Co and Monster in the original agreements," a Coca-Cola spokesperson said. Analysts, however, were skeptical whether consumers would take to Coke's energy drinks under a brand mainly associated with fizzy sodas.

"While Coca-Cola certainly has the distribution muscle to push new offerings, we question the fit of an energy drink under the Coca-Cola trademark," Cowen & Co analyst Vivien Azer said. Stifel analyst Mark Astrachan said he did not think Coke's new line of beverages would gain meaningful market share as consumers of energy drinks opt for something edgier. Astrachan said Coca-Cola may be using the launch to enhance the consumption of trademark Coke drinks rather than materially change its relationship with Monster that is currently worth about $6 billion. Monster shares fell 10 percent on Thursday after it revealed that it was in arbitration with Coke, while Coca-Cola shares were down marginally at $49.27. 

Coca Cola News and Press Releases

This article has been read 1151 times.

Would you like to own a Coca Cola Franchise?

For more information about becoming a Coca Cola Franchise owner, including a franchise overview, start-up costs, fees, training and more, please visit our Coca Cola Franchise Information page.

Coca Cola Logo


P.O. Box 1734
Atlanta, GA

Phone: 1.800.GET.COKE (800.438.2653)

Coca Cola Franchise Information

Share This Page!


FREE FRANCHISE ADVICE

First Name:
Last Name:
Address:
City:
State: (US inquiries only please)
Zip:
Phone:
Email:
Capital to Invest

(Min $50k Investment)
Investment Timeframe:

Can I use my 401K or IRA
to buy a business?

Submit your request for a
FREE Franchise Consultation.